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Most of the houses used by the local people in Latvia are from the period of Soviet Russia. Therefore, people have recently begun changing these and prefer newer and more comfortable houses. This situation caused a serious movement in the property market. Which cities are more preferred when purchasing a house in Latvia? Which types of apartments are the most popular? These answers and more are in our article.
How are the Prices of Houses in Latvia?
Those who do not want to live in Soviet-era houses have turned to new projects. The residences in these projects have an average of three rooms and a total size of around 70 m2. Loans given by banks are also very convenient for these extremely comfortable residences. Due to these loans with a monthly payment of 400 Euros, the interest in the residences is quite high. So, how are the prices of houses in Latvia? Are the sales high or low, especially compared to neighboring countries?
When a comparison is made between Latvia, Estonia, and Lithuania, it will be seen that the number of houses sold in Latvia is lower. On average, 20 out of every 1000 people purchase housing in Vilnius and Tallinn, while only 14 out of 1000 people purchase housing in Riga.[1]
There are different reasons for this. However, it would not be right to say that the price factor is very important among these reasons. The prices of houses in the economic segment in Riga are around 1,600 Euro / m2. The amount to be paid for the upper segment can be said as 1,700-2,500 Euro / m2. The figures here are more reasonable by 15-40% compared to Tallinn and Vilnius. Thanks to the incentives and payment facilities provided in Latvia in recent years, large increases in housing investments continue.
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Who Purchases Houses in Latvia?
When looking at people who buy houses in Latvia, it will be seen that young buyers come first. These are usually young people in their 30s. Young people who do not want to live in Soviet-era houses stand out as the most important home buyers in Latvia.
When the recent buyers are examined, it will be seen that 20% of them are in the 25-40 age range. However, today, it can be said that only 40% of the buyers are in their 30s. Hence, the biggest home buyers in Latvia are young people in their 30s.
The reason why young people buy houses more is their financial comfort. Young people with an average salary of 2,000 Euros can buy these houses without difficulty by paying 20% of their salary (approximately 400 Euros) to loans. The fact that they do not have extra costs makes it possible for them to buy houses easily.
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Which Cities are Preferred for Purchasing Houses in Latvia?
When people think of Latvia, the first thing that comes to mind is Riga. It is also thought that housing sales take place in this city. This is partially correct. However, recently, people have also turned to the cities neighboring Riga. Looking at the population growth, it will be seen that Riga’s population is partially decreasing, while the population of its neighbors is increasing rapidly. This situation clearly shows that people have turned to different cities to live and buy housing.
Pieriga can be shown as the most remarkable city after Riga.[2] Being in touch with nature and the cleanness of its air is among the most important reasons why people have turned to this city. It would not be wrong to say that the mentioned settlement will grow even more soon.
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How to Choose a Flat?
First of all, the rapid development of Latvia in recent years and the incentives it provides to foreign investors have attracted them. It is known that foreign investors buy housing here especially for advantages such as residence permits and Schengen visas. Based on this, experts have stated that housing prices will increase in a short time. Buying a flat to avoid delays may be a sensible choice. So, how to choose a flat?
The flat should be seen as a long-term investment. Therefore, it must be examined and thought about in detail before purchasing. The decision should be made after considering the city, its balconies, comfort, and durability.
The Interest of Foreign Investors in the Property Sector
One of the buyers of property in Latvia is foreign investors. They show great interest in the houses here especially because of the Schengen visa[3], the right to free movement in Europe, residence permit, and then the right to become a citizen. Besides, the increasing interest in the houses here has shown itself as a profitable investment in the last few years. Therefore, foreign investors appear as important buyers of property in Latvia.
Igors Krumins continues his activities as a commercial and international lawyer within the body of “Jurmala Invest”. He has more than 10 years of experience, especially in the investment sector, and has provided consultancy services to numerous companies with his legal expertise. He successfully completed his undergraduate studies at Baltic International Academy and graduate studies at Latvijas Universitate. Apart from his native Latvian language, he can also speak Russian and English fluently.
